Two men, including an employee of Air India SATS, have been arrested by customs officials for allegedly trying to smuggle gold into the country with a value of Rs 17 lakh at Delhi airport, according to an official statement issued Monday.

Air India SATS, which is a 50:50 joint venture between Air India Limited and Singapore-based SATS Limited, said it has terminated the service of the employee.

Giving details of the case, the customs department said a passenger was intercepted by the officials on his arrival from Bangkok on Friday.

"Further, an airport staff working for M/s Air IndiaSATS was also intercepted. He was assisting the said passenger in smuggling," it said in the statement.

A detailed personal baggage search of the passenger and the airport staff resulted in the recovery of two gold rods crudely given the shape of a 'kada' (bangle), weighing 600 grams with the total value of Rs 17.18 lakh, it said.

The passenger admitted that he was involved in smuggling of gold weighing 300 grams on previous occasions at Ahmedabad airport, the customs department said.

"The Air IndiaSATS staff also admitted that he had assisted some other passengers in smuggling of gold at Indira Gandhi International (IGI) Airport, New Delhi earlier," it said.

Both the passenger and the AIR IndiaSATS staff have been arrested and the gold has been seized, the statement said.